SELIC CORP OPPORTUNITY DAY - set.or.th
Transcript of SELIC CORP OPPORTUNITY DAY - set.or.th
We provide solutions for adhesive, our offer includes customized products and services that match our customers’ needs.
Facts & Figures
23นักเคม ีและเทคนคิในทมีวจิัยและพัฒนา
4หอ้งปฏบิตักิาร และการ
วเิคราะห์
38ปี แหง่ประสบการณ์ และความเชีย่วชาญใน
อตุสาหกรรม
4เทคโนโลยกีาวทีผ่ลติ
ไดเ้อง
9,120ตนั ก าลงัการผลติ
3-5%ของรายไดท้ีเ่ป็นงบประมาณดา้น
นวัตกรรม
27ประเทศ ครอบคลมุ
ตลาด
กาว solvent
เป็นกาวทีอ่ยูใ่นสถานะของเหลว ใชต้วัท าละลายประเภท Solvent ในกลุม่ของน ้ามนั หรอืทนิเนอร ์
เป็นตวัท าละลาย
กาวน า้
เป็นผลติภัณฑก์าวสงัเคราะหแ์ละใชน้ ้าเป็นตวัละลาย ท าใหก้าวมีสภาพเป็นของเหลว ใช ้
งานง่าย
กาว hot melt
มคีณุลักษณะเป็นของแข็ง ใช ้
งานผา่นความรอ้นเพือ่ใหก้าวละลายกลายเป็นของเหลวเมือ่เนือ้กาวเย็นลง จะยดึตดิวัสด ุ
2 ชิน้เขา้ดว้ยกัน
กาว hot melt PUR
เป็นกาวในกลุม่ hot melt แต่ตา่งกันทีค่ณุสมบัตคิงทน โดยเมือ่เกดิการยดึตดิแลว้จะไม่แปลงสภาพเหมาะกับงานที่ตอ้งการความทนทาน
Adhesive Technologies
Our customers in various industries across 27 countries
Food & beverage Consumer productsPrintingFurnitureConstructionAutomotive FootwearEtc.
417.42
434.32
446.20
Q1-3/2016 Q1-3/2017 Q1-3/2018
9M
133.26
153.29150.78
Q3/2016 Q3/2017 Q3/2018
+11.88MB +2.74%
Consolidated FS
- 2.51 MB-1.5%
3M
Revenue growth +2.74% for the 9-month period Slight decline of -1.5% observed for the quarter compared to previous year.
(Unit : MB)
Domestic sales recorded growth while export sales decline
Consolidated FS
The decline in export sales is due to the political uncertainty in South Asia and South Africa regions.
(Unit : MB)
85.16 88.06
68.1462.72
Q3/2017 Q3/2018
Domestic
International
Hotmelt and water based adhesive grow according to plan and align with global market demand
Unit: Million Baht
Solvent
-7.38% YOY(-19.01 MB)
Hotmelt
257.72 238.72
9M/2017 9M/2018
137.51
160.44
9M/2017 9M/2018
Unit: Million Baht
+16.7% YOY(+22.92 MB)
29.35
36.40
9M/2017 9M/2018
Unit: Million Baht
Water Based
+24.0% YOY(+7.05 MB)
Profitability
Consolidated FS
Gross Profit Margin(exclude other revenue)
3.17% 3.52%
1.07%
2017 Q1-3/2017 Q1-3/2018
Net Profit Margin
Gross profit margin decreases by 8.8% from the first 9 month period while net profit margin down to 1.07%.
25.84% 26.76%23.72%
2017 Q1-3/2017 Q1-3/2018
Q3/2018 Net Profit
Consolidated FS
18.72
2.96
4.06
2017 Q3/2017 Q3/2018
Net Profit
3.17%1.93%
0.02%
2017 Q3/2017 Q3/2018
Net profit =0.04MB, decreased due to the Non-Recurring transaction cost of M&A amounted to 4.06 MB in Q3/2018
Non-Recurring Cost 4.06MB
Non-Recurring Cost 2.69% of Revenue
Net Profit Margin
0.04
PMC Group
Type of Business Manufacturer of self-adhesive labels Sales and distribution of PMC’s products in Singapore
Address Khok Kham, Muang Samut Sakhon District, Samut Sakhon 74000
Loyang Industrial Estate #02-20, 30 Loyang Way, 508769
Corporate Type Company Limited Private Company Limited
Registration Date 20 April 2004 1 March 2004
Registered Capital THB 100,000,000 SGD 2
PMC Label materials Pte Ltd.(Singapore)
PMCS
PMC Label materials Co., Ltd.(Thailand)
PMCT
FOUNDER
100.0% 100.0%
Strong Market Presence 1
Rank one of Top 4 in Thailand Market
3041 2207 1031 772 836 486
9.8%
0.3%3.6%
11.6%
2.9%
0.0%
5.0%
10.0%
15.0%
0
1000
2000
3000
4000
Avery Dennison(Thailand)
Thai KK Industry Oji Label(Thailand)
PMC LabelMaterials
Lintec (Thailand) UPM Raflatac
Revenue
Margin
Source: Department of Business Development
2
Net Profit was about 10% on average
828 811852
122 122 148
14.8% 15.0%
17.3%
9.6% 9.7%
11.7%
0
100
200
300
400
500
600
700
800
900
2015 2016 2017
Revenue EBITDA %EBITDA %NP
Stable Financial Performance
Combined FS
3
• ISO:9001:2008 Certified for Quality Management System Certification from the United Kingdom Accreditation Service (UKAS)
• Restriction of Hazardous Substances (ROHS) compliance
High Quality Standard and Compliance
Various type of Product Category
Product Common Paper
Prime Label Films
Industrial Label Films
Variable Imprintable
Thermal Transfer
Variable Imprintable
Direct Transfer
Specialty
FacestockType
Paper Film Film Paper or Film Paper of Film Paper of Film
Usage
• Health & Beauty Aids
• Food & Beverages
• Pharmaceuticals
• Consumer packaging
• Health & Beauty Aids
• Food & Beverages
• Consumer packaging
• Product ID• Industrial
Labeling• Chemical Drum
Label
• Product ID• Logistic Tracking
Label• Industrial Labeling
• Baggage Tags• Weighing Scale• Retail Shelf• Ticketing
• Advertisement• Decoration• Security labels
5
Transaction Overview
Transaction Structure and Estimated Size
No. of shares % shareholding THB million
PMCT 1,000,000 100% up to 945
PMCS 2 100% up to 105
Total up to 1,050
PMC Label Materials Co., Ltd. (PMCT)
E.V.A. International Co., Ltd (EVA)
PMC Label Materials Pte, Ltd. (PMCS)
99.97% 100.00% 100.00%
Company Structure Post
Transaction
Transaction Overview
Transaction Timeline
October November December January 2019
BOD resolution
Share Purchase
SELIC’s EGM
Transaction complete
19
14
4
Sources of Fund
• The Company will use cash on hand and operating cash flow of Baht 150-200 million, and a long term loan from a financial institution amounting up to Baht 900 million (this loan has already been approved by the financial institution), as approved by the Board of Directors.
Benefits & Value Creation Opportunities
Increase Revenues and
Profits
Market Expansion and
Coverage
Operations Synergy
Benefits & Value Creation Opportunities
Increase revenues and profits
THB million
595
845.7
1440.7
0
500
1000
1500
SELIC PMC Combined
47.02
147.6
194.62
0
100
200
300
SELIC PMC Combined
THB million
2017 REVENUE : combined 1,440.7 Million Baht
2017 EBITDA : combined 194.62 Million Baht
Benefits & Value Creation OpportunitiesIncrease revenues and profits
Combined P&L Selic and PMC
Baht in thousandsFY16
AuditedFY17
Audited9M18
Unaudited
Revenue 1,367,231.40 1,437,633.46 1,094,260.92
Cost of sales (1,007,819.33) (1,071,740.35) (816,761.67)
Gross profit 359,412.07 365,893.11 277,498.79
- - -
Selling expenses (27,218.16) (30,117.76) (19,974.77)
Administrative expenses (186,414.79) (191,299.78) (149,796.07)
Operating profit 145,779.12 144,475.57 107,727.95
Other income 5,234.98 3,563.48 4,231.88
Gain on forex 3,025.00 5,783.00 1,286.04
EBIT 154,039.10 153,822.05 113,245.87
Finance cost (11,366.44) (6,823.03) (3,614.18)
EBT 142,672.66 146,999.02 109,631.69
Income tax (24,920.95) (28,859.47) (19,877.72)
Net income 117,751.72 118,139.55 89,753.97
Adhesive Value Chain Analysis
Opportunity to expand vertically into Converted Product Producer. This offer new channels of distribution for SELIC
Market Expansion & Coverage
Benefits & Value Creation Opportunities
Market Expansion & Coverage
Benefits & Value Creation Opportunities
Product extension in label market• Glue applied label• Self adhesive label
Operations Synergy
Benefits & Value Creation Opportunities
Overseas Footprint Expansion
• Leverage strong oversea network to expand export market for PMC
• Potential of regional office in Singapore for MNC companies
Technology Synergy
• Strong R&D focused from SELIC
• Adhesive for specialty labels such as removable stickers, deep freeze resistant labels
Operations Synergy
• Potential reduction on inventory and raw material categorization
• Cost and expertise sharing
Q & A
This Presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this Presentation. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words.
The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be, relied on as promise or representation of the Company as to the future.
270 Liapkhlongphasicharoenfangtai Road, Nongkhaem, Bangkok 10160, THAILAND
Phone : +662 807 3347Email : [email protected]
Website : www.seliccorp.comFacebook : Selic.Thailand